Bombardier reported financial results for the second quarter of fiscal year 2010. Revenues totalled $4.9 billion, the same as the corresponding period last fiscal year. Earnings before financing income, financing expense and income taxes (EBIT) totalled $313 million, compared to $371 million last fiscal year. EBIT margin reached 6.3% versus last year's 7.5%.

Net income for the second quarter ended July 31, 2009 amounted to $202 million, compared to $259 million for the same period last fiscal year. Diluted earnings per share (EPS) reached $0.11, compared to $0.14 last fiscal year. Free cash flow (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) totalled $18 million for the second quarter ended July 31, 2009, compared to $99 million last fiscal year. The cash position amounted to $2.8 billion as at July 31, 2009, compared to $3.5 billion as at January 31, 2009. The overall backlog stands at $47.5 billion, as at July 31, 2009, compared to $48.2 billion as at January 31, 2009.

"We are taking the necessary actions to face the current difficult economic environment, which continues to have an impact on our results", said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. "The aerospace industry as a whole continues to experience challenging conditions, nevertheless, Bombardier Aerospace delivered 80 aircraft during the quarter, compared to 89 last year, and increased its market share position in business aircraft."

"Bombardier Transportation had a good quarter. Revenues, EBIT margin as well as free cash flow improved compared to last year and the group is well on its way to achieving its target EBIT margin of 6% for the full fiscal year."

"Overall, we have strong fundamentals, a large backlog, a solid liquidity position, and we remain focused on reducing costs and improving cash flow generation," concluded Mr. Beaudoin.

On September 1, 2009, Bombardier's Board of Directors approved a $500-million two-year unsecured revolving credit facility with a syndicate of commercial banks and other institutions, arranged by National Bank Financial Inc. This facility will be available for the general working capital needs of the Corporation.

Bombardier Aerospace
Bombardier Aerospace's revenues totalled $2.4 billion compared to $2.5 billion last fiscal year. EBIT reached $154 million translating into an EBIT margin of 6.4% for the second quarter ended July 31, 2009, compared to $243 million, or 9.7%, last fiscal year. Free cash flow usage totalled $10 million versus a free cash flow of $100 million for the same period last fiscal year. The level of free cash flow in the second quarter ended July 31, 2009 represents a $520-million improvement over the first quarter of the current fiscal year. Bombardier Aerospace's backlog totalled $19.6 billion as at July 31, 2009, compared to $23.5 billion as at January 31, 2009.

During the second quarter, business aircraft cancellations continued to exceed the level of new orders. However, there are some signs of stabilization in the business aircraft industry, though historically, a lag exists between economic recovery and its positive impact on revenues. According to the latest General Aviation Manufacturers Association (GAMA) report, Bombardier Aerospace remains the leader in business aircraft both in terms of revenues and units delivered.

In the commercial aircraft division, lower passenger traffic and airline profitability remain a concern, affecting the level of new orders for regional jets. Deliveries for the quarter increased to 28 aircraft compared to 23 for the same period last year. Bombardier Aerospace received orders for 15 Q400/Q400 NextGen turboprops, compared to nine for the corresponding period last year.

Bombardier Transportation
Bombardier Transportation revenues reached $2.5 billion for the second quarter ended July 31, 2009, an increase of $131 million over the same period last fiscal year, despite a negative currency impact of $306 million. EBIT totalled $159 million, compared to $128 million last fiscal year, while EBIT margin reached 6.2% versus 5.3% last fiscal year. Free cash flow amounted to $149 million for the second quarter ended July 31, 2009, compared to $105 million for the same period last fiscal year. The order backlog stood at $27.9 billion as at July 31, 2009, compared to $24.7 billion as at January 31, 2009.

During the second quarter, Bombardier Transportation reported new orders worth $3 billion, compared to $2.1 billion last fiscal year, leading to a book-to-bill ratio of 1.2, compared to 0.9 for the same period last fiscal year. These orders include a $735-million agreement with the Toronto Transit Commission, the largest single order ever awarded for light rail vehicles worldwide. In Brazil, the group also received a $120-million service contract for the modernization of the 30-year old Electrical Multiple Units (EMUs) of Companhia do Metropolitano de Sao Paulo (CMSP).

Subsequent to quarter end, Bombardier Transportation obtained an order for the supply, operations and maintenance of the INNOVIA Automated People Mover (APM) system for Phoenix Sky Harbor International Airport in the U.S. valued at $255 million. This contract represents the largest new-start APM project in North America in the last decade.